Adient PLC (ADNT)
Debt-to-capital ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,228,000 | 2,073,000 | 2,376,000 | 1,213,000 | 1,848,000 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
September 30, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $2,228,000K)
= 0.00
The debt-to-capital ratio of Adient plc has shown a declining trend over the past five years, decreasing from 0.67 in 2019 to 0.53 in 2023. This indicates that the company has been effectively managing its capital structure by reducing its reliance on debt in relation to its total capital. A lower debt-to-capital ratio signifies a lower financial risk and greater financial stability, as the company is using a higher proportion of equity to finance its operations. This trend suggests that Adient plc has been improving its financial health and reducing its leverage, potentially enhancing its ability to weather economic downturns and pursue growth opportunities.
Peer comparison
Sep 30, 2023